While any network outsourcing initiative could encounter some of the problems experienced by Company X, the following recommendations will help prevent this situation from occurring.
1. Retain Key Network Staff. Company X reassigned some staff while others transferred to the outsourcer. In retrospect, they should have provided appropriate incentives to retain their subject matter expert to manage the project and the outsourcer. This would have prevented several problems from occurring.
2. Identify and enforce milestones. There should be agreed-to, demonstrable milestones that identify if the outsourcer is performing as required as well as enforceable remedies if they are not.
3. Verify that the technology is and remains compatible. Business application requirements did change for Company X, but the FR technology could not support them. However, this should have been discovered by Company X during their due diligence phase. Unfortunately, they assumed MPLS was installed at all locations based on outsourcer statements. IT and C-level executives should verify long-term technology compatibility to protect enterprise interests.
Bottom Line
Enterprises continue to seek ways to improve their bottom line by outsourcing IT related services. The network infrastructure represents an area where costs can potentially be reduced along with personnel expenses. Although network outsourcing can exhibit paper benefits, this case study analyzes a mid-sized company's actual experience one year later.
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